HAITONG INT'L: MGM CHINA (02282) Q3 results slightly beat expectations

HAITONG INT'L released a research report stating that MGM CHINA (02282) Q3 results slightly beat expectations. The company's Q3 total revenue was HK$8.926 billion, up 4.9% year-on-year and up 3.5% quarter-on-quarter; adjusted EBITDA was HK$2.395 billion, up 0.9% year-on-year and up 2.9% quarter-on-quarter, corresponding to an adjusted EBITDA margin of 26.8%, down 1.06 percentage points year-on-year, slightly better than market consensus, mainly benefiting from a higher VIP win rate. The bank noted that the company's Q3 market share rose to 17.1%, with MGM Macau and MGM Cotai accounting for 6.6% and 10.5%, respectively. The company's quarterly gross gaming revenue grew about 5% year-on-year, while Macau market gross gaming revenue declined about 4% year-on-year over the same period. September monthly market share reached 19.2%, and visitation to the two properties during the National Day Golden Week grew 10% year-on-year. The company's net debt fell to US$1.7 billion, improving 6% quarter-on-quarter, corresponding to a net leverage ratio of 1.5x trailing 12-month EBITDA. Management stated that the premium mass segment remains an important source of business growth and maintained its operating expectation of margins in the mid-to-high level of the 20% range.